Big data is an immense part of any innovative business and a fuel for sophisticated decision-making algorithms in the financial services industry and beyond. The importance of the stream of records on customer behavior (whether financial or not) is difficult to overestimate as it provides companies an opportunity to make accurate business choices and stay relevant in the market.
Research suggests that for businesses, the ability to manage big data analytics is critically important to their success or failure in other fields – with IoT, in particular. Big data is especially important for large commerce players that process vast amounts of information on a daily basis. Companies like eBay use data for designing and uploading a technical strategy and deliver a business value among other things.
Martin Hall, Chief Data Scientist for Big Data Solutions at Intel, shared at the Strata + Hadoop World conference that the explosion of interest and activity in big data means that “we now have the data, the analytics and the compute power to deliver more than insights – we can enable intelligence.”
The most recent estimates from the International Data Corporation (IDC) suggest that worldwide revenues for big data and business analytics (BDA) will grow from $130.1 billion in 2016 to more than $203 billion in 2020.
As Dan Vesset, Group Vice President, Analytics and Information Management, commented in the official press release, "The availability of data, a new generation of technology, and a cultural shift toward data-driven decision-making continue to drive demand for big data and analytics technology and services. This market is forecast to grow 11.3% in 2016 after revenues reached $122 billion worldwide in 2015 and is expected to continue at a compound annual growth rate (CAGR) of 11.7% through 2020."
The results have revealed that technology investments will be led by IT and business services, which together will account for more than half of all big data and business analytics revenue for most of the forecast period.
Software investments are expected to grow to more than $60 billion in 2020, led by purchases of End-User Query, Reporting and Analysis Tools and Data Warehouse Management Tools. Hardware investments will grow at a CAGR of 8.7%, reaching $29.9 billion in 2020.
"This year and over the life of the forecast, we're expecting to see healthy growth in spending on big data and analytics technologies from nearly all industries, including banking and telecommunications," said Jessica Goepfert, Program Director, Customer Insights and Analysis. "<...> Within banking, many of these efforts are focused on risk management, fraud prevention and compliance-related activities. The customer experience is at the heart of the telecommunication industry's BDA investments; for instance, BDA technologies are being deployed in call centers to enable representatives to delight callers with superior service."
From a geographic perspective, IDC research suggests that more than half of all big data and business analytics revenues will come from the United States.
“By 2020, IDC forecasts that the US market for big data and business analytics solutions will reach more than $95 billion. The second largest geographic region will be Western Europe, followed by Asia/Pacific (excluding Japan) and Latin America. The two regions with the fastest growth over the five-year forecast period will be Latin America and the Middle East & Africa.”
The benefit of turning to big data for business intelligence is not limited to the business world at all. Data can be applied to matters of social concern – like life quality improvement by income smoothing. Professionals believes that big data could be harnessed to help address social problems of hunger, disease, poverty and social inequity.
Moreover, the matter of financial inclusion is largely reliant on the proper use and application of data. While traditional financial institutions are looking for reasons to deny someone of access to financial services, tech companies like Smart Token Chain, BanQu and others, are looking for reasons to expand connectivity and open new opportunities for those excluded from the global financial system. Those companies aim to leverage a different set of records for inclusive growth and a better tomorrow.
Big data can be both a positively powerful tool and a destructive mechanism as well. It depends on the organization whether big data can facilitate intelligent business operations and decisions or broaden an exclusion. A wide range of decisions in marketing, pricing policy, target audience choice, etc., is based on data. The way that data is collected and handled determines the outcome for consumers, communities and businesses.